Musk’s xAI Puts $20B+ into Mississippi Data Hub

The revelation was made public on Thursday by the state’s chief executive, Tate Reeves, in the midst of the surge in generative AI, which is driving the need for greater computational capabilities.

The fascination with data centers has soared in the preceding year as technological titans and AI hyperscalers have mapped out and put billions of dollars into growing infrastructure. xAI’s latest growth emphasizes the firm’s significant aspiration to better vie with leading names – OpenAI’s ChatGPT and Anthropic’s Claude – through training increasingly sophisticated models.

xAI anticipates initiating the data center’s operation in Southaven in February 2026, according to the declaration.

Musk unveiled the procurement of a data hub termed “MACROHARDRR” on December 30. At that moment, the magnate affirmed that it would enhance xAI’s computing might to 2 GW, yet refrained from sharing particulars about the investment and locale.

As stated by the governor’s communication, the data center nestles close to xAI’s newly obtained energy generation facility site in Southaven, as well as the enterprise’s current data center situated in Memphis, Tennessee.

Memphis accommodates an xAI supercomputer array known as Colossus, which the organization labels as the biggest across the globe.

The business expended $7.8 billion in funds throughout the initial three quarters of the year, as per Bloomberg. AI startups generally deplete considerable amounts of capital rapidly, allocating billions on pricey, cutting-edge data center machinery.

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